Transfer Pricing
/ˈtrænsfɜr ˈpraɪsɪŋ/
Definitions
- (n.) The setting of prices for goods, services, or intangible property transferred between related entities within a multinational enterprise for tax and regulatory purposes.
The company implemented transfer pricing policies to comply with international tax laws.
Related terms
Commentary
Transfer pricing rules are critical in preventing tax base erosion and require careful documentation to satisfy tax authorities.
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